Why Starbucks Failed In Australia
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- čas přidán 14. 05. 2024
- Starbucks can be found all over the world, from Shanghai to Guantanamo Bay. But there is one continent that was uninterested in the coffee giant. Australians largely rejected Starbucks' attempted takeover, which led to an embarrassing retreat for the brand.
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Why Starbucks Failed In Australia | CNBC
Long story short, Aussies have good coffee that Starbucks doesn’t
kai higer yea, why would we buy coffee that’s worse than instant coffee.
not true
@@BILLYBANTER69 Very true. Aus and NZ have been coffee snobs for a very long time. Your trashy over sugared drinks arent coffee bro.
kai higer, very true. I don’t like any sweetener of any sort in my coffee and found Starbucks the one time I tried them utterly tasteless. I guess it’s designed to not interfere with the flavour of the syrups so many like to add.
Right. I am living in Australia
Is anyone else kinda proud of Australia for totally not giving a crap about Starbucks?
Hear hear!
Why would you be proud of that? Thats kind of sad really
Amerishill alert!
I think they're saying that it's sad to be proud of something that really doesn't matter at all. It'd be like me saying I'm proud to not like McDonalds, as if I've somehow accomplished something.
+1.
as someone who's always thought of starbucks as overpriced, oversweetened pishwater.... bravo Australia, good work on this one
based take
@@haywire4686 it's right though. And if anyone thinks Starbucks is good then they just haven't been to a half-decent cafe
crazy but starbucks is the most affordable coffee store in turkey right now
@@Marcelo-hf5xlbased means that its true
@@blauendonau9779Damnn
As a former Starbucks employee this video is 100% accurate, I think one of the biggest factors was price. You can get coffee of equal or better standard for less money at just about any café in Australia, so there is really no reason to go to Starbuck's unless there is nothing else open.
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Australia already had a coffee culture, and Starbucks is rubbish.
good coffee and meth
Honestly.
I love Vittoria coffee i used to drink when i lived in Sydney.
Exactly. Good coffee doesn't come from teenagers adding syrup and whipped cream to it.
Agree! I'd rather go to costa coffee and paris baguette instead if i just want good coffee. My mocha comes from Godiva cafe. 😍
So Australians decided to get coffee that was better, from a person they knew and liked, at a place that was more friendly and convenient, and for a lower price? Nope, I still can’t figure out what went wrong... 🤔🙄😜
That sums it up.
Nailed it
It’s almost like we already had good coffee😂
😂😂😂
Neither can starbucks. Dumb as dog💩
I think a minor point that's missed is that Australian's are very well traveled with most of us having travelled internationally at least once in our lives, so we'd already been exposed to Starbucks at cafe's in other countries - and discovered it was terrible. Huge milkshakes and slushies disguised as coffees, or watery bland filter coffee.
So Australians already had no interest in Starbucks when it eventually arrived in Australia.
Good point!
Interesting! I actually thought since Australia is so far from the rest of the world that people would travel less. Where do most Australians travel to?
@@pangaea5258 Our most popular destinations are New Zealand, Indonesia and Europe, but basically you'll find us travelling in every country in the world. I have encountered fellow Aussies in Madagascar, Tanzania and Iceland. You name it, we travel there!
Nah I think you have a distorted view, we certainly are very privileged but it’s not that universal
You're right about all those other coffee drinks. But I still love a black Starbucks drip coffee if I'm going to a chain. Tastes great and is super strong for night shifts :)
in australia we are definitely snobby about our coffees….especially in melbourne. most people (like me) know starbucks for being over-priced, sugary fast-food coffee. honestly it’s really crappy when there are so many brilliant baristas here that serve better coffees and other drinks for better prices.
did you know that the world barista competition is held here in Melbourne
GMO with links to bill goat senior
I love how Australians are proud of Starbucks failing there.
Absolutely. When Starbucks opened on Brunswick Street it was an epic failure to the delight of EVRYONE who frequented the street.
Did the same in my city. It was in the main shopping area of the CBD with many coffee brands and cafes littered throughout the complex. Starbucks didn't stand a chance. They charged several dollars for a tea bag and hot water, that's how stupid they were.
It's only for the tourists that come here now. I do better coffee than that stupid chain. Good riddance!
Yep, most places in Oz make much better and cheaper coffee.
OK so Starbuck's failed. How bout telling me whats on tv tonight down under. Australia is like a suburb of the states
For Aussies the question is why Starbucks succeeded in other countries
I live in the US and wonder this too.
Hi
Didn't work in Israel, like Australia, we have a rich italian/arabic based coffee culture. No one wanted to pay for expensive, bad tasting coffee.
Exactly! However, as an American myself, I think it's because it's a brand for idiots that wouldn't know good coffee if it was gifted by "god" itself!
Convenience.
When they finished up by saying that Starbucks is trying re-enter the Australian market by relying on tourist business, I went back and checked when the video was posted. Honestly, poetic, no notes.
Also you don't need a whole video on market saturation and global financial crises to explain why they failed in Australia. The coffee is bad.
That's right.
A friend who, pandemic aside, annually travels to Europe reckons that our coffee Down Under is better than even France's and Italy's.
" you don't need a whole video on market saturation and global financial crises to explain why they failed in Australia. The coffee is bad" obviously a lot of people disagree with you since Starbucks is successful in many countries... so yeah I'm pretty sure taking the market and the global financial situation into account is relevant
@@Rubiecat i personally don’t think it’s that these people like the coffee better, I think it’s still bad, it’s about the brand and the sugary drinks.
i watched a documentary about how Starbucks brands itself and so on and I think that’s the whole point.
@@Rubiecat "obviously a lot of people disagree with you since Starbucks is successful in many countries"
Said countries don't possess much in the way of options. Bluntly, these groups are totally ignorant of how good or bad Starbucks offerings really are because they lack the necessary frame of reference. This same reason is why we see a constant stream of testimonials from tourists visiting Australia expressing newfound dissatisfaction with the coffee that was available to them prior.
Disagreement from populations that lack any meaningful insight on a product doesn't account for much, all things considered. Neither does Starbucks success with those markets. The fact that Starbucks has failed miserably to assimilate into cultures that actually have a robust appreciation and understanding of what good coffee is speaks for itself.
@@Rubiecat the thing is that there's no good coffee in places like the US, y'all just don't have any other experience other than drinking sugary blended-up icecream, Gloria Jeans' has an outlet near me serving similar stuff to what Starbucks has and the difference is massive. I personally prefer a McDonalds' barista (feel free to hate me, but I just believe the coffee is better).
As an Australian I think Starbucks tastes more like coffee-flavoured milkshake than actual coffee
That's a good way of putting it
This is actually a fair critique. I have seen too many comments on here saying that Starbucks tastes like dirty brown water (or worse), lol.
Let me summarise: Starbucks coffee tastes like instant coffee. Why would we buy instant coffee for the same price as proper coffee?
I think instant coffee tastes better than theirs. Their coffee tastes burnt and upsets my stomach. I think the people who drink it do so as some snobby signal to other snobs it's some cultural thing in North America.
@@AnnaLVajda exactly , its a corporate racket that preys on a pretentious medium income low intelligence members of our consumerist hierarchy we call society .
I never taste starbuck before, is what you say is true??
Starbucks is way too overpriced. Good Day White Vanilla Coffee and Caramel Macchiato Coffee, which are almost 11 times cheaper, taste better than Starbucks. Starbucks coffee easily upset my stomach.
What do you mean the same price? They charged way more than other cafes.
*Simple, we Australians are huge coffee snobs and StarBucks coffee isn't that good*
It’s not even that we are snobs it’s just that we like quality stuff
Yep starbucks is bad expensive coffee
Your coffee is trash, 90% of it is "look what I can do with Milk" zero thought about cherries, roasting proccesses , etc.. Starbucks sucks ass though.
@Let’s Doodle Something! Yeah as I stated Starbucks is garbage
@@hobmaniac better than most
This video COMPLETELY misses the point. Starbucks couldn't compete on basic coffee flavor. Their coffee tastes terrible. Their baristas don't know how to make good espresso. Starbucks failed in Australia because Australian coffee--even at a lousy airport cafe--is way way way better than Starbucks. That the people in this video couldn't figure that out is just another sign of how coffee-impoverished the US is.
Starbucks came to Sweden 11 years ago and had 17 shops at the most, now there’s only 4 left and they’re only in the capital, Stockholm. Starbucks explains are that the rent is to high, but I would guess that Swedes just don’t care for bad coffee. Sweden coffee consumption per capita is one of the highest in the world, only Finland drinks more coffee. We love our coffee black and strong, not like the dishwater Americans call coffee.
also local chains like Espresso House have been better at adapting to what locals want (and better at exploiting workers for cheaper labour within the local labour laws, ehrm...).
And honestly I just don't think people her trust starbucks to have good coffee, personally if I'm at the station in Sthlm I walk past to the Starbuck to get to another coffee shop for my coffee.
Had 'dishwater' coffee from Starbucks o Rottenest island. I was so bad that I threw most of it out.
Starbucks was the only coffee shop at the ferry terminal.
For some reason they seem to be doing reasonably well here in the Netherlands. I guess many people here like dishwater.
and still sweden failed to create a single coffee chain that is remotely as popular as starbucks across the world? sweden is a global embarasment.
@@darylgrimes2601 Ooh someone’s salty. The biggest embarrassment to the world would be the Divided States of America.
Hot tip, you walk into a Starbucks in Australia, everyone knows you're a tourist
That’s only if you buy the coffee
Spot-on. Starbucks has come back, and it's experiencing a bit of success now from what I can tell, only because we have much more tourists than 10 years ago, not its coffee got better.
@Tt Miller pickpocketing is not really a thing you have to worry about in Australia like most European countries
or a 14 year old girl
@@Phahel7 well that isnt true lul
They were also probably shocked when they realised they couldn’t pay their staff $7 an hour here.
So very true
😂👍
Here in brazil, staff gets $1,35 an hour. 🙈🙉🙊
@@guilhermegoldman 1.40$ hi from turkey
@@erensahin9467 say it ain't so joe...🎶
Grew up poor in a small rural town in Oklahoma and never was a caffeine drinker, I visit Starbucks once on a vacation trip to Dallas just to find out what all the hype was about, can't remember exactly what I order but what I do remember is that I paid for an overpriced coffee and sandwich, never managed to finish either as I could've gotten a similar product on a gas station for half the price.
As an Aussie, I've had some bad coffees from local cafes, but none of them got close to how absolutely crap a starbucks coffee is. I go for a flat white, and the Starbucks flat white was genuinely undrinkable. It wasn't just a bad coffee, it was a complete failure of a drink in everyway.
Even a maccas or 7/11 coffee goes better than a starbucks, at least in my experience.
Maccas?
@@JoeKing837 Micky D's, the golden archers, The bent Chip, Macdonalds
@@JoeKing837 McDonald’s
7/11 $2 coffees go down pretty well in the morning.
@@hidad5601 fr.
I've lived in Australia for 2 years (back in the States now) and literally any coffee cart on the street can make better coffee than Starbucks. The coffee in Melbourne was especially good
Oi oi oi! Cheers mate
You got it mate. We love our coffee here.
Years ago went to a Starbucks once in Melbourne & wasn't that impressed with the coffee. Never been back to one since & dare I say I LOVE my coffee.
So true! I had a cappucinno from a small coffee cart in a market once, and it was the best I've ever had so far.
Yeah the boys melby represent lads
Why don’t they succeed here? Their coffee sucks. Aussies would rather go get better quality coffee, which can be found literally anywhere else
Ash Archer or you can have a beet
Beer
Ash Archer You’re too nationalistic.
@@darkyboode3239 your're too one toned, anything else to say?
@@darkyboode3239 no ash is just telling the truth
I had the opportunity to visit Australia for two months x2. Once in 2019 and again in 2020. The food there is amazing! I couldn't believe how delicious everything is. Basically, we are not eating real food here in the States.There is a huge difference in how things taste. It's the same with their coffee. It has depth and flavor. We are so accustomed to our fake food, we can't tell the difference. It just tastes normal to us. It's not until you leave here and come back that you'll know. More than likely, SB was trying to feed them the subpar garbage that we're given here in the States ...THAT'S why it failed.They're not going to pay for that crap.
One of my favorites in Sydney was chai latte. I remember my first time going to Starbucks after returning home. I ordered a chai latte, took a sip and spit it back in the cup. I threw it away. I was shocked at how watered down and tasteless it was. It took me awhile to get accustomed to this stuff we call food here. Sadly, it doesn't bother me anymore. I miss Sydney. I would love to go back again...
I didn’t know Starbucks just steamrolled it’s way into Australia like that, good for you Aussies and shame on Starbucks.
As an Australian, Starbucks probably has the worst coffee in Australia compared to almost all coffee sold here. We have very high standards when it comes to coffee and I'm sorry to say this but Starbucks is overpriced for very low quality coffee.
Vince D mean it in the politest way ever but does an Australian ever admit something foreign is better?
ჯონ ლლოიდ my wife is australian. The answer is never lol.
Oh yes, because “everything” in Australia is soooooo much better! 😏
ჯონ ლლოიდ ikr. He's picky. He's saying it's bad because he's salty he can't afford to constantly pay for Starbucks.
Facts. It only takes one to travel the world to see how low of a standard coffee is in America. Spain, Portugal, Italian coffee are amazing.
The answer is simple - Australians know what good coffee is and therefore how crap Starbucks coffee is. If you look at global barista competitions - Australian baristas are consistently highly ranked.
likechaaa you can find amazing coffee in the USA but you usually only find it at local owned shops usually the Italian ones or you can make it yourself which is stronger than Starbucks lmao homemade coffee from store bought grounds in a plain coffee maker Is better than Starbucks Starbucks is honestly trash and I’m an American 😂😂😂
That and most places are half the price from starbucks too.
Tao TU Everything has better standards compared to China
lol are you insulted by the fact that someone said that Australians know their coffee and what makes you think that everything in Aus is subpar standard. (typing this comment I realise that I am a hypocrite as I am now the insulted one but hey who cares im hypocrite)
And yet Gloria jeans is successful in Australia - their coffee is revolting.
Melbourne alone has arguably, and actually award-winning, the best coffee in the World. It's incredibly unique there due to the milk and water used. Along comes Starbucks with their more expensive, coffee-flavoured milk with sugar and you wonder why it didn't work?
Not arguably, a Melbourne Brewster won the world championship which was also held in Melbourne last year.
Australia:- "Keep Your Sugary dibeto troubles outta my continent "
Update: Why Starbucks failed a second time in Australia. They decided to ignore the local market and go after the International tourists, and in 2020/2021 there aren't any International tourists.
haha good one xD
Why? Because of the covid scam?
That's like one of the few good things about Covid 😂
😂😂😂😂😂😂
The tourist who come to Australia know they will be getting the best coffee, just not at Shitbox.
As an Aussie I was shocked at how bad the Coffee was when I was in the United States. Almost turned me into a tea drinker !!
Servos at home have better coffee.
Visit France. It’s even worse! 😄
I was shocked at how bad everything was in the states compared to here. The food quality was abysmal
Some of the best coffee I've had was when we lived in Laos. Right up there to anything we can get in Australia. One of the cafes I went to in Vientiane you had a choice. I'd drink medium roasted organic Arabica and they'd grind it fresh for you. About two bucks for an espresso with a splash of warm milk. I used to bring Lao coffee beans back to Australia when went home for a visit.
The coffee coffee is awful at Starbucks. The sugary or espresso based drinks (desserts) are the only good part.
@@childofthesun8889 no
That's because Australia have their own coffee that's amazing already. I was there in the 90's & it's probably the first time I'd been anywhere that had coffee shops everywhere & they were mostly independent coffee shops ran by Italians. Don't forget Italians emigrated to Australia decades ago.
Casual 'on/off' coffee drinker for the past 35 years . The "best" coffee I ever had was from a roadside food truck back in the early 80s. Used to work with my dad once in a while and he would stop there to get coffee before going to the construction site. Still remember how good that brew was !!
Inferior product at higher price its pretty simple.
Andrew Hernandez last time i checked Starbucks dont make coffee
Matthew Munn when I go to my local Starbucks, I see people drinking tea, beer, juices and wine
No coffee
There should be more people like you
that doesn't explain why it has failed in Australia specifically...
I don't like them coffe
Because Australians are too smart to pay $5 for a crappy cup of burnt coffee.
Yeah, we usually only do it that one time... then never return.
Here in the Philippines, hanging out at Starbucks is a status symbol 😂 its where the affluent and pretentious people congregate
@@abdulabadkumbati664 That's quite true. Many here in the PH only buys Starbucks just for the status symbol. You could see the usual bringing a Macbook then buying a Starbucks. Starbucks doesn't even taste like coffee anymore. So I just brew my own coffee at home so I could save money. Also there are also some local coffee shops where I live which also make good coffee for less.
XD #JustMonika#Ramadan#LarryLawton #natsuki #Nightcore #BangDream
Now if only we could get rid of Maccas too
As an American, I am proud of Australians for exhibiting good taste and proper refinement. Like the Kardashians, Starbucks is a novelty that lasted well past its shelf date. Frankly, I am shocked Starbucks survived past the 1990s.
Charbucks is to coffee as the Big Mac is to fine dining. Basically noting special, difference is the Big M is priced accordingly.
Starbucks opening in Italy is literally like selling ice to an eskimo. Good luck with that.
That’s a goon one👏
If mafia gangs become franchisees they'll do brilliantly.
Precisely. STARBUCKS think they can sell their name in Italy....I can't wait to see how it goes for Starbucks in Italy.
I think they will target the tourist market
Like selling ice to an eskimo??? What a bizarre comparison.
Starbucks opening in Italy is more like an ice making factory that makes ice from dirty bath water opening in the North Pole..... Eskimo's don't need it, they don't want it and their ice is way better.
My Aussie friend said to me: “Once you arrive in Australia, don’t go to Starbucks for coffee. There are better places.”
DEMONSTRIA WOO they’re right
Cbg G 4 dollars for a speciality coffee medium is very standard. Don’t go to Maccas, or 7/11. Find a small local shop, they will have much better coffee for the same price
@Cbg G you can just go to a local cafe with baristas who are actually trained (believe me I know I worked at Maccas and got 2 days training and all the other people I worked with got no training so burnt coffees all round) and pay the same price or even cheaper at some places. Support your local not another American franchise.
Any decent local coffee shop is better than Starbucks /dunkin etc
DEMONSTRIA WOO mhmm yea
As someone who's worked as a barista for a specialty cafe and roastery, I cannot drink Earthbucks, it just tastes downright horrible
🎯 Key Takeaways for quick navigation:
00:01 ☕️ Starbucks' Global Expansion
00:25 🇦🇺 Starbucks' Entry into Australia
01:21 🚀 Rapid Expansion and Lack of Differentiation
02:13 ☕️ Australian Coffee Culture
04:06 🌟 Success of Gloria Jean's in Australia
05:03 🇮🇹 Starbucks in Italy and Starbucks' Comeback in Australia
Made with HARPA AI
Bravo to Australia. They can see right through overpriced overhyped products, and chose to patronize the little guy.
Heard of McDonalds?
Even that's too analytical. As others have said. They tried to sell crap coffee in a country known for having great coffees.
I did the right thing, I'm in Adelaide I bought a cup for myself and didn't rely on someone else's comments. It was a plain cup, with milk. It was very, very hot and the "coffee" had no taste, nothing. I forgot how much I paid for it, but that was my first and only cup of Starbucks. I'm glad I had that cup. Starbucks closed down soon after, never to be seen or heard from again.
XD #JustMonika#Ramadan#LarryLawton #natsuki #Nightcore #BangDream
Proud of you Australians 👍💐
Australians don’t have the same demand for big sugary frappuccinos and cake pops. We like simple, quality coffee from our local café
And decent price. Sadly though cafes are a bit of a rip off at times when it comes to their cakes and biscuits ($4 for one biscuit that would have cost them around $10 to make a batch of 12-15 of the same cookie and size). I only go for the coffee and even that I'm finding its getting a bit over priced these days. Its rare to find a coffee now thats naturally strong and doesn't taste like a cup of waterdown milk....Seems like 1 in 5 cafes are worth it, the rest are just looking out for their own pocket and nothing else
LittleMissJmoo Moo It makes sense that the prices are high in areas like Sydney due to the astronomical prices of real estate. You can assume these cafes are paying an arm and a leg for rent and I think you’d find their profit levels aren’t that much higher than what they are spending
LittleMissJmoo Moo there’s enough cafes around for it to be extremely competitive so they couldn’t get away with too much overcharging. It’s all relative to cost of living etc
I actually really like starbucks
Elle Handley Shame I was in 7th grade when I was in Australia... All I ate those meat pies and chocolate milk. Didn't try the coffee but my mom enjoyed them.
When I was a teenager in the 80s, Sydney cafe culture was already firmly established. Excellent quality and price in almost every suburb of Sydney - all of them small family cafes where you could see the barista make your coffee, and happily have a chat with them. Melbourne was the same. With Australia's two biggest cities already completely soaked in an excellent cafe culture, any new entrant was going to have a rough time.
Starbucks never made sense here. It was a super-expensive mass-produced coffee of a lower quality than we had been getting for many decades. It was only a matter of time before the mounting losses forced them to surrender to reality. The only real surprise was that it took them so long to realise that it was never going to work.
Considering the cafe culture in Australia where there’s a good coffee shop on every street corner…. Why on earth would you choose Starbucks over a local cafe? Even McCafe coffee is better than Starbucks
Because their coffee sucks and costs a lot?
Lisa Mieth Yes you are 100% right
Yes! It's so overpriced compared to local cafe
No it’s not it’s the best
The flavour is bleh
have you tried coffee at australian cafes?
half of them make some really good stuff, but some are not so great.
depends on the barista who makes it also, you can tell the difference when being ordering a mocha by different workers some really just nail the measurements on the head while others lack in say chocolate. or too much milk or too little, etc.
Because in Australia, there are too many alternative options for coffee. And they are also better.
lumberjack
False.
@Ike Olereke excellent response. Care to elaborate?
You have no taste. Starbucks is my favourite. Better than Gloria Jean's and coffee club.
Australians are spoiled for choice when it comes to coffee. There are so many great cafes serving top quality coffee which is better than Starbucks. As a Canadian expat I have seen both sides and Australia wins hands down!
lumberjack , are you the coffee shop on Bridge Rd?
If so, I challenge any of those commenting to test your coffee against Starbucks.
As an Aussie I'm proud of our country for letting this gross overpriced chain go to crap
Tip for anyone visiting Australia, don't go to Starbucks. Literally every other place is better.
Respect to Australians for staying conscious about good quality and not getting carried away by the wave of american mass influences like so many european countries...
Much obliged mate
We don't like starbucks its bc the tourist that visit us want them 😒
palemoonlight96 Burger King, literally, had to change their name to Hungry Jacks in Australia because people were stick of American companies coming over. To this day, my great grandfather will not go into Mcdonalds or any fast food chain EXCEPT Red Rooster which is like a Australian Chickfilla. This has been going on for Generations.
red rooster is 😤👌💦
They had to change their name because another Australian business already had the name Burger King.
Starbucks doesn't make sense in Australia. Nobody is going to ride a kangaroo across the plains for 2 hours, dodging deadly spiders and snakes, just to get a $15 cup of coffee.
I hope you are kidding...
No. Have you seen Crocodile Dundee or The Rescuers Down Under?
Mate just get an emu, they're way faster and can dodge little critters
very original.
Emus can outrun the drop bears, too.
I'll always go to a local place rather than a Starbucks, even if it's a dollar or so more expensive at the small business, just since the coffee and atmosphere are better. I think Aussies in general are particular about everything we interact with, if we find a business that makes coffee we like, we will support and make a community within that circle. I've tasted some of the best coffee in less commercialized stores. (also the servo coffee is actually wayyyyyy better than sb anyways haha)
For most corporations to expand it needs to be done at a sensible rate. Often when companies rapidly expand they contract just as fast, like EB games/ game stop and second cup.
This is no surprise to me. That's like opening a Dominoes pizza place in Italy.
AmbioAuora Sooth Absolutely true,really great comment!
Or...opening a Starbucks in Italy
Dominos have 15 outlets in Italy, most of them in Milan and the north of the country. None in Rome though
Didn't knew Australia has good coffee...
M WOLF
Australia has one of the best coffee taste. People invited me to Starbucks when I traveled in US. Actually, in Australia, young people go to Starbucks for boiled water after a long drunk night club party. No one else really steps into their stores. In US, well, size matters. There's no taste in American food culture, it's all about size. That's what I realised there.
put short: we have cheaper, better coffee than Starbucks
That is true
No offense, Caity, but perhaps you fail to realize the full significance of Starbucks. I well recall the time when Starbucks first came to my small city in America, and my reaction was: "My town has finally become civilized, our town's people rendered elegant and refined."
I wasn't making a hate comment on Starbucks, just stating a fact. Our bean quality and prices are reasonable. Starbuck's poor quality and high prices aren't reasonable. Your situation is just the result of gentrification.
Gloria Jeans Coffee, now that one are good.
They probably aren't Bakker, Starbucks in the US is considered to be a trendy chain (which makes me shudder thinking about the state of coffee in america) Think of it like the coffee emporium for hipsters.
How does it take almost 7 minutes to say 'their coffee was expensive and sucks'
Just a few points.....
Pretty much all that has been said in this video clip is accurate but it is incomplete. The biggest two issues Starbucks had, competing with the local friendly Cafe were:
1. Wages. In Australia unions wield enormous amount of power in labour laws thanks to labour party and as such employing staff is an expensive endeavour. This is partly the reason why the vast majority of Australian retail business, and in particular the ones in food and drinks industry, will fail within 1 to 2 years. So while Starbucks is able to buy its wholesale coffee cheaper, The local friendly Cafe runs on minimum number of staff (usually just the business owner and their family) and/or staff that are paid cash and below minimum wages.
2. Population density and dispersity in Australia works very differently to US and Europe. In most places, if you take a square kilometre measurement of population in that vicinity, vs the availability of cafes and restaurants in the same vicinity, there is more restaurants with less people "in that vicinity" seeking to eat or drink. This is not the same in the US, Europe and many other places in the world where you have very high density of people packed into small places / apartments / offices and so on.
Gloria Jeans also works in a very franchised manner and very much "lends" itself to how the local cafes work. Sure the menu is important as well, but it is on much lower degree of importance than the points I have mentioned.
An Australian here.
Starbucks coffee is sweet, syrupy, horrible crap.
That's the reason it failed.
Australians eat vegemite and like it.
l yeah. Marmite is better.
The reason the coffee is horrible crap is because they burn the beans. The US is all about over doing everything, in this case roasting
and chinese brought it back
Couldn’t agree more. Australians like proper coffee, not confectionery in a cup. I reckon we have the best coffee outside of Italy here down under.
There are only 2 or 3 Starbucks in Italy. Anyone wonder why? Have a coffee anywhere in Italy and it’s better than in Starbucks.
@deliverence LOL Starbucks is better than the average "Italian Coffee". You clearly have absolutely no idea what you are talking about, neither what "gourmet" is.
What's next? McDonald is better than 3 michelin star Italian Restaurant?
@@fabiobiffo Starbucks isn't good coffee. Lol.
Yup, the one in Milian is like this massive fancy art exhibit, just to get people in the door.
Australia inherited its coffee culture from Italian immigrants.
@@erfanmoshtagh the Arabs inherited from Ethiopia, and we all came from Africa lol
I'm from the US. The first time I ever went inside a Starbucks was in 2001 when I was living in Australia. There was one near the Rocks in Sydney that was popular but rarely crowded. I wasn't overly impressed. But I continued to go to Starbucks at Darling Harbour to buy steamed milk. I'm not sure why. The local coffee shops around my Sydney neighbourhood were much more enjoyable when I was living there.
I now live in central Germany, and our only Starbucks (located in Kassel) closed down in 2021, I believe. I wasn't too sad to see them go. I do enjoy going to Starbucks at the Amsterdam Centraal when I am there, but I think that is more for the ambience than the menu.
I love Gloria Jeans. They are my favourite coffee franchise. I was so excited when Gloria Jeans opened in Muscat (Oman) in 2014/15.
One American franchise that might be successful in Australia is Peet's Coffee. But to my knowledge, they are still based only in the US.
Glad to hear that. It is the awareness in people that lead to the failure of Starbucks in Australia. Hopefully, this awareness travels to other parts of the world. Thank you
No, it's really simple. It's an inferior product. That all. Why would we pay more for crap American product when we do it so much better.
starbucks failed in australia, because they are not stupid enough to buy 15 $ latte
hahaha..
Lattes are so unhealthy and full of sugar. 😝😝😝😝
Club Soda
No it isn't worth it. Starbucks make inferior and overpriced coffee (and the service was terrible).
I'll pay for great coffee. That totally excludes Starbucks.
15$ for a coffee that's robbery. And Australians know plenty about robbery, and all other crimes as well 😂😂😂
What? only if you put sugar.
Starbucks is so overrated. Support your local coffee shops!
how about support the cafe that makes the coffee you like, whether it is local or a chain?
Jim Gustafson, if you visit local cafes to see if you like their coffee it counts as supporting! :з
either way...I feel no obligation to support local. Why is the well being of people that live near me more important than the well being of people who don't live near me?
I like Starbucks but it is very overrated.
I agree
Thanks for the detialed video! As an aussie, I wondered why they didn't seem to exist in my state. Never knew the history.
Starbucks opened a shop in my town about 8 years ago and was closed with in a year. I used to drive past regularly and only saw customers in there a couple of times.
Because we prefer coffee. On average the US hasn’t a clue what it is. They grew up on weak, percolated stuff.
Our Italian immigrants schooled us.
Fly ingDutch But Starbucks has Italian names so it’s Italian!!! And it looks good on my Instagram!
(Sarcasm)
Out of the coffee you can buy in the US (McDonald's, Dunkin) Starbucks offers the darkest roasts. So I doubt that's a big reason why. Especially since Starbucks is doing very well on countries with great coffee culture.
Ehh, I prefer tea.
Brendan O'Brien all of those you mentioned produce rubbish coffee, Starbucks included. Best cafes in New York are run by Australian baristas.
Name one country with ‘great coffee culture’ SBs is doing well in
+Brendan O'Brien You know your point is moot when you have to start comparing Starbucks to Maccas coffee to make it sound good
The funniest part was the narrator calling a flat white a "speciality menu item"
Technically, it is from a Yank perspective
Tim Mackie from a what
Ikr, like its some kind of Café Bombón
Sir Handel No a yank is slang for American. It’s rhyming slang. I.e septic tank yank. They’re also called seppos 😂
And thinking that coffee drinkers like Gloria Jeans.
In Australia we know what coffee should taste like. Starbucks is barely coffee.
3:31 the burn!! 😆
Because aussies prefer good coffee.
D.Sandero italians too
D.Sandero here here 👏🏻💁🏼🇦🇺
Dacia Sandero
Really?? Like Australians are too Good at everything. Nicest people in the world (according to Australian lol) they drink best coffee in the world, they invented all good things in the world. oh wait Australia didn't exist 300 years ago. Btw coffee is not from Italy. Coffee beans come from Africa , South America and Asia. let that sink in Maaates. Also no TEA didn't come from England. It came from China. Gosh I love Earopean b.s supremacy mindset
Woody womp womp
People in Philippines drink Starbucks coffee not because it tastes good (because it doesn't), but because it shows they are wealthy enough to afford it.
That how it is in America its a status symbol...I can afford but I don't buy it
Hahahah
Just like Indonesians 😆
Indonesian too, maybe
That's true! I'm a filipino btw
Really ?, but it's such bad quality coffee.
In Canada, Starbuck's use to be better but then they change some coffee types and raised prices. Some stores had comfy chairs and most bathrooms are kept pretty clean.
Never been in a Starbucks as a German as well. Seems to me like all other American food/drink brands like McDonald's and KFC. You literally taste the bad quality and mass production in their products.
The only time I went in Starbucks a puzzled looking man asked the staff why their coffee wasn't as good as the other cafes in town. They replied "Because we're not allowed to make it properly". That's all I needed to know😂 Never returned
If you're a tourist in Italy and buy your coffee in Starbucks you have failed the basics of being a tourist.
Gold
Jay Phoenix Its a joke -_-
Ironically, coffee doesn’t grow in Italy.
Honestly same in Australia. If you're wanting a Starbucks over pretty much any other nearby cafe, it's not coffee you're after...
@@nmbnmbnmb They invented teh Barista, you nong. Espresso is an italian invention. Don't mess with cafe culture, it'll get ugly.
Oh you're opening a store in Italy? That's like opening a dominos there
at least dominos is actually decent
Jokes on you, there's Domino in Milan
you mean Pizza Hut?
L Farru lol I’ve actually been there too
L Farru - Brilliant!
I am an Australian and lived in the USA for 15 years. In a gross generalization Aussie coffee is superior to the American coffee. Starbucks was better than average however tasted burnt to me. No surprise they struggled in Australia.
Coffee (from local cafes) in Australia is topnotch. Lived in Sydney for years and I won't drink SB coffee even when I was drunk. It was just so bad.
It is just crap coffee. Simple.
Mallee Fowler exactly
Mallee Fowler I’ve said the same thing total crap.
Mallee Fowler "coffee" more like sugar or corn syrup.
Yue Titus you can just... not get sugar in your coffee? lmao their flavors arent any worse for you than other food chains
Agreed, it is crap
Lets be honest as an Aussie starbucks tastes like cheap dirty water
Jadoy Blaziken no just Australian...
It does it’s disgusting it has no taste
R.J & Co Yes so true
For Americans
Walked into a Starbucks back in 2016 and instantly walked out because it smelled like sewerage - not sure how anyone could stand 5 minutes in there
6:24 Totally American thing to do when you're aboard, to go to the same place what you have back home, instead of trying out something new...
I see a lot of people taking about coffee. That's Starbucks's first mistake. It isn't a coffee shop.
Starbucks is a sugar-milk shop. They need to brand themselves honestly.
Yeah! I see Starbucks the same as a milkshake or McDonald’s frappe, and I love both. I know they claimed that Australia doesn’t like sugary drinks but there is a booming bubble tea market here especially among young people? Maybe Starbucks should start advertising itself as a hangout/place where you can study with your sugary drinks, rather than for its sub par coffee. Like a slightly more classy maccas
Here's the thing. Starbucks was trying to compete in a country saturated with great coffee. Every place makes a decent brew. Even McDonalds for crying out loud. You have to offer something pretty special to stand out here. Especially in Melbourne.
Selling Starbucks in Oz is like trying to sell ice to an Eskimo. Doomed to fail.
Australia actually invented McCafé so there’s that. Even at a fast food place we were dissatisfied with the watery, flavourless, American style “coffee” so invented a whole new type of McDonalds for ourselves. Now McCafe is everywhere.
Indeed it is. The main difference with our coffee and their coffee is that, they always had half and half creamer and flavoured creamers to add to it. It made the coffee a little more tolerable. For some reason, Australian's never got that. Though, to be fair, it wouldn't have helped al that much.
I think the strategy as a point of familiarity for tourists in tourism hotspots could be quite profitable - just not on a large scale
That's a really good point.
As an Australian I actually forgot we even ever had Starbucks here lmao
Spot on!
😂😂😂
i never knew we had it!!
i always see one store in the Brisbane CBD but that's pretty much it 😂😂😂
Clint-Excalibur71 i think there's one in garden city too
Australians hated the burnt taste of Starbucks coffee. Aussie coffee is so much better.
As an Australian here in Sydney, coffee culture is huge here and I hate coffee. Australian's do NOT want coffee chains or coffee franchises popping up. Gloria Jeans also failed here as well. Australian's want local, friendly baristas that know you personally. I have a friend who owns multiple coffee stores but all 3 stores are different branding, he said he won't do well if there are the same stores all over sydney cause it seems too mass produced to the consumer. Smart man.
I wouldn’t say Gloria Jeans is “successful” in Australia - the words “irrelevant”, “empty” and “dated” come to mind though
like 'only coffee shop in this shopping centre I GUESS I have to go there'
There were a few Gloria jeans in wollongong. but now they’re all gone
I can only name one Gloria Jeans in Victoria aswell, but for a coffee corporation i think thats what success looks like here
The other words that come to mind are “Hillsong church fundraisers”.
Its kept afloat by church groups and the wealthy elderly its seen as dull overpriced and no range to the 27-37yo demographic
A seven minute segment to explain what an Australian can tell you in a few seconds. Our coffee culture was built on post-war Italian immigration, so we knew the best coffee long before Starbucks came along.
I agree. Every town in Australia had an Italian or Greek cafe where you can always get a great coffee.
But that begs the question: The United States also had a large Italian migrant community. Why didn't Cafe culture grow there as well?
Mulloway Man Of course, I understand that but even in areas with high Italian immigration like New York and Chicago had no cafe culture despite a strong Italian cultural presence in cuisine. In fact, new York and Chicago are the two cities in America with the MOST Starbucks locations.
Nx Doyle thank you for the short and better version
Its like they arrived AFTER 500,000 other coffee shops had set up and thought ‘you know, if we make bad coffee and overcharge for it, will muscle in on those 500,000 other cafes’. Lol
Yeah this isn’t rocket science at all. I disagree that they expanded too quickly in the Australian market etc etc. The fact of the matter is that in Australia and here in NZ, pretty much any café or any coffee cart around the countries serve better coffee than Starbucks do
TLDR that Simpsons episode with the "coffee / BEEER" scene is ridiculously out-of-date for Australian culture today. In the early 90's tea (from our English roots) and beer (from our English roots) were still our national drinks. We went through a whole transformation through the new millennium. You can almost track the swap between tea and coffee consumption in Australia with the studies showing the desire to leave the British monarchy behind. From initially embracing to quickly rejecting chain coffee shops, especially in Melbourne, we developed a taste for the bean itself, unadulterated by loads of sugar and syrup, which demanded local cafes with trained baristas and well-sourced beans. Now you can only find Starbucks in Australia still at places like big train stations and the international airports to which they connect. All of them will have a Starbucks for familiarity to international tourists. But they're not trying for Aussies anymore, except the "Muffin-Break nannas" (a local chain of mall cafes populated by older ladies, their daughters and their grandkids on "shopping day") who will go anywhere recognizable if they happen to be there perhaps to see a family member off on holiday. But for Aussie coffee lovers a badly-made coffee can ruin your whole day, and chain stores were aiming to productionize something that is truly artisanal, the beans sourced for quality not quantity and the barista will make sure it's made exactly as you ordered.
Why did Starbucks fail in Australia?
Bad coffee - simple
We have amazing coffee here and we don't need a Grande coffee for $5. Starbucks is only for tourists, insta and Wifi.
Starbucks in italy? Really? Do they really think they can outdo coffee in italy?
Bill Latibay Connecticut does Pizza better than New York so it kinda is possible.
Why do people think the coffee in Italy is godlike? Their third wave coffee scene is almost non existent and it’s been like this for almost a decade. The majority of coffee suppliers in Italy use low end, blended beans and cafes can’t even tell you what the blends are, let alone get any single origins. This comment section is full of people who have no idea about the actual state of coffee these days.
BlownMacTruck
My grandfather, who comes from Australia and knows good coffee but now lives in England, says that he avoids the Italian-owned cafes in the UK. So, you may have a point.
Bill Latibay They can't, the Starbucks will open in a highly frequented tourist area, so I assume all clients will be foreigners
BlownMacTruck they cannot even survive australian market let alone in italy. Italians know their coffee, and most of them brew their own at home. Italians would never buy overpriced starbucks coffee. They can have success in a heavy touristy areas but to make starbucks as a staple for italians like in the states is a long shot.
Good. Keep monopolies out and keep local cafe culture!
I don't drink coffee, but I was on the road with a friend who is a coffee snob. We were walking around Launceston to find him a good coffee, and we stumbled upon this tiny little place in a small square through an alley behind a carpark. We knew, instantly, that it was going to be good coffee, just from the look of the place.
We were right, he said it was fantastic coffee. I can't tell you the name of the place; I forgot, and I can't even find it on google maps. Places like that exist everywhere, you just have to look.
It's simple...Australalians like coffee to taste like coffee and not dirty sock water.
Even the Starbucks coffee pods taste awful.
No depth of flavor. No richness. You taste it and it's like "so where's the coffee???"
If America had our coffee culture, Starbucks would never have taken off their either. Would you rather pay up to $8 for a drink that resembles but is *not* a coffee, is too big and too sweet, or like $3.50 for a badass barista-made bad boy that’s far and away the better product...It’s not hard...
Neither. Even $3.50 for a coffee is too much.
astrohawke - $3.50 Australian Dollars is the average price for a coffee, so like $2.50 in Freedom Bucks.
If the Italians brought their coffee culture to Australia, why didn't the Italians bring their coffee culture to America?
@@MrGeocidal There are tons of Greeks, living, owning businesses in Australia and those folks know good coffee.
Starbucks is famous for their frappuccinos, not their coffee. And anyone who has had a frappuccino knows that is it not even remotely "similar" to coffee, or even pretending to be a coffee. It is a frozen drink that can have coffee flavorings added. Their regular coffee is not all that bad, and if you know how to order, it won't cost you more than $3 for a venti. ..which is comparable to most coffee shops where I live.
I almost feel bad for Starbucks: "We have learned the locals don't like our coffee so we are going after the tourist market". Said in 2018. I wonder how well that aged?
They’ve actually opened a drive through Starbucks in Ballarat (Victoria) recently (07.2022). Reckon they are persisting and going for drive throughs. And from what I could see it WAS popular and busy.
Starbucks: tries to appeal to tourists
Covid: well hello there
I live in Sydney. The only people I really know who like Starbucks are preteen girls who only really buy it to post photos on Instagram.
That species is found in every country in the world.
Very true, but there is one in Melbourne 5 minutes away from me and its pretty decent, better then the one i went to in los angeles, ive only been to 4 starbucks before, first time in the city near federation square (its closed down now and iy was passable) one in disney land aneheim, its good, i went to one in los angeles, it wasnt very good, the best one is 5 minutes away from my house, it opened a couple of months ago
But they will grow up and know no better :-(. Happy meals all over again.
littledicks i kinda like it but the closest shop near me is miles away and its way to overpriced
preteens and Asians. I'm not being racist here you go to one of the few Starbucks left in Australia the only people in there are a handful of Chinese tourists...
As an Australian, I humbly thank fellow Migrant Australians for sharing their coffee culture with us.
I like living in a country with 30% Immigrant population.
It makes everything about a million times less boring. The food here is just amazing if you know where to go.
Depressed middle aged men in the comments will tell you otherwise but eh.
We didn’t share you just went and took it. (jk)
@@VCRider then leave
@@IOwnKazakhstan Its very great to have such a large immigrant population, different cultures and different meals are always great.
Too bloody right. This is how multiculturalism works. The best ideas come out on top and become mainstream.
In Australia Starbucks is considered below 'ordinary', that means it's absolutely terrible
Because our level and standards of coffee is far better then in the US, we actually are one of the best countries for quality coffee